The world today is in many ways dependent on fuels, or substances that are burned or otherwise modified to produce energy. At the same time, industry, government, and consumers are becoming increasingly aware and concerned about the environment. One concern in particular is that the use of certain fuels emits greenhouse gases into the atmosphere, potentially leading to climate change or global warming. Specifically, many believe that increasing levels of these emissions may cause the atmosphere to absorb more of the energy radiated from the earth's surface and thereby negatively influence the climate over the long term. The six primary anthropogenic greenhouse gases, as covered under the Kyoto Protocol to the United Nations Framework Convention on Climate Change, or “Kyoto Protocol” as used herein, are carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons, and perfluorocarbons.
Consumers concerned with the environment and the potential for climate change have long sought ways to reduce the potential environmental impact due to their own consumption of fuel and corresponding emissions. That is, environmentally conscious consumers may seek to reduce or eliminate their own emission footprints. These consumers have tried a variety of lifestyle changes such as driving more fuel-efficient vehicles, switching to alternatively-powered vehicles such as hybrid vehicles, taking public transportation, and/or reducing the use of fuel in their homes. While these lifestyle changes may be effective to some extent, consumers and businesses alike are increasingly engaging in additional methods of reducing emissions around the world. One such method is the purchase of emission reduction credits to offset the emission of greenhouse gases.
An “emission offset,” “offset,” or “carbon offset” is generally a financial investment in a project directed at reducing greenhouse gas emissions. An offset unit, i.e., one offset, is typically directly proportional to some amount of reduction or avoidance—either direct or indirect—of greenhouse gases. As used herein, an “emission reduction credit,” “credit,” or “carbon credit” refers to a financial instrument used to subsidize a certain quantity of emission reduction or avoidance through such offsets. For example, one carbon credit may represent the reduction of one metric ton of carbon dioxide or its equivalent in other greenhouse gases. Currently there is no uniform standard for certifying emission offset projects and issuing credits. A few evolving voluntary standards include those set by Green-e, as embodied in the Green-e Energy National Standard version 1.5, modified Apr. 3, 2008; Environmental Resources Trust, as embodied in Environmental Resources Trust Uniform National Standard for EcoPower Renewable Energy Certificates, dated June 2006; the Voluntary Carbon Standard, as embodied in Voluntary Carbon Standard 2007, released Nov. 19, 2007; the Gold Standard, as embodied in Gold Standard Requirements 2.0, dated Aug. 1, 2008; and the Climate, Community and Biodiversity Alliance, as embodied in Climate, Community and Biodiversity Project Design Standards (First Edition), dated October 2005. Flexible mechanisms for the worldwide purchase, sale, and exchange of emission reduction credits were set forth in the Kyoto Protocol. The present invention is not limited to any particular standard; any suitable standard may be employed or devised.
Opportunities to offset emissions exist by means of projects around the world that reduce or avoid greenhouse gas emissions in some manner. For example, a project seeking to produce clean energy from renewable sources is assumed to displace an equivalent amount of conventionally produced electricity, thus avoiding the corresponding amount of emissions. Offsets include projects for renewable energy (e.g., wind, solar, hydroelectric, biofuel, or other sources of renewable energy), methane abatement (e.g., combustion or containment of methane generated by farm animals, landfills, or industrial waste), energy efficiency (e.g., electricity/heat cogeneration, fuel efficiency or energy efficiency projects), destruction of pollutants (e.g., hydrofluorocarbons, perfluorocarbons, and nitrous oxide destruction), reforestation or other change in land use (e.g., avoided deforestation, afforestation or soil management), geothermal power (e.g., hot dry rock), and fuel switching (e.g., replacement of high-sulphur fuels with low-sulphur alternatives). The projects described above are typically verified by a qualified third party in accordance with an applicable standard. After verification, credits may be issued by the project developer or by an applicable governing body such as the United Nations Framework Convention on Climate Change, and listed in a registry and/or a database for trade.
For consumers, avenues to purchase emission reduction credits are somewhat limited. Some more environmentally-conscious consumers are able to purchase credits through the Internet, from retail vendors, or from entities engaged in the trade of credits. Many other consumers are interested in reducing their own emission footprints as well as emissions around the world, but are largely unaware of the avenues available for them to do so.